Finally, Bitcoin has liftoff. Guys in the market were predicting Bitcoin $50,000 in early January. We’re there. Now what? Is it worth chasing?
Nothing is worth chasing if you’re investing money you cannot afford to lose, of course. Otherwise, take Jim Cramer and Elon Musk’s advice. Buy at least some Bitcoin. Even if that means buying the Grayscale Bitcoin Trust (GBTC), which is the easiest way in and beats setting up those annoying crypto wallets with passwords as long as this sentence.
So the answer to the headline is this: using the old school method of dollar cost average, put $50 or $100 or $1,000, whatever you can live without, into Grayscale Bitcoin Trust. Open a cryptocurrency account with Coinbase or a financial advisory if you’ve got more money to play with. Bitcoin might not go to the moon, wherever the metaphorical Bitcoin moon is (is it $100,000? Is it $1 million?), but it’s an asset worth owning now and pretty much everyone on Wall Street recognizes this.
“Once you understand the basics, you’ll see that adding digital assets to your portfolio is one of the most critical investment decisions you’ll ever make,” says Jahon Jamali, CEO of Sarson Funds, a cryptocurrency investment firm based in Indianapolis.
Allianz’s chief economic advisor, Mohamed El-Erian, said on CNBC on February 11 that the argument for investing in Bitcoin has reached a pivot point.
“Yes, we are in bubble territory, but it is rational because of all this liquidity,” he says. “Part of gold is going into Bitcoin. Gold is no longer seen as the only defensive vehicle.”
Wealthy individual investors, as well as corporate investors, are doing quite well in the securities markets. This means they are making millions in gains. Crypto investors are doing even better. Some are cashing out and buying hard assets — like real estate. There is money everywhere. This bodes well for all securities, even in the middle of a pandemic (or the tail end of the pandemic if you want to be hopeful about it).
Last year was the year of many unprecedented global events, namely the worst pandemic since the Spanish Flu of 1918. Some 2 million people died in less than 12 months from a single, mysterious virus of unknown origin. Yet, markets ignored it all thanks to stimulus.
The initial shocks from last February and March had investors recalling the Great Recession of 2008-09. They saw depressed prices as an unmissable buying opportunity. They piled in.